Sole Source JA_Redacted.pdf

CUI//SP-PROCURE//FEDCON

CUI//SP-PROCURE//FEDCON

Control Number:

JUSTIFICATION REVIEW DOCUMENT

FAR Part 13 Justification and Approval for Other than Full and Open Competition

PROGRAM/EQUIPMENT: 1500KW Kohler KD1500 Emergency Diesel Generator Set for Dworshak National Fish Hatchery at the Walla Walla District for the United States Army Corps of Engineers

AUTHORITY: Title 41 U.S.C. §1901(e)(2) as implemented in FAR 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items

AMOUNT:

Prepared by:

Contract Specialist Email:

Phone:

Date: 24 July 2025

Contracting Officer:

Contracting Officer Email:

Phone:

Date:

Technical:

Electrical Engineer Email:

Phone:

Date:

Requirements:

Project Manager Email:

Phone:

Date:

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Small Business:

Phone:

Small Business Representative Email:

Legal Counsel:

Phone:

Deputy District Counsel Email:

Control Number:

HQ Legal Counsel:

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FAR Part 13 Justification and Approval Simplified Procedures for Certain Commercial Items

1. REQUIRING ACTIVITY: The U.S. Army Corps of Engineers (USACE), Walla Walla

District, Dworshak National Fish Hatchery, 276 Dworshak Complex Drive, Orofino, ID 83544.

2. CONTRACTING ACTIVITY: The U.S. Army Corps of Engineers (USACE), Walla Walla District (CECT-NWW), 201 North Third Avenue, Walla Walla, WA 99362-1876.

3. DESCRIPTION OF ACTION: The U.S. Army Corps of Engineers, Walla Walla District is requesting to issue a new firm fixed price, sole source commercial supply contract to Power Systems West – Kohler manufacturer’s sole, authorized distributor in Idaho State. This contract has a requirement for the purchase of one 1500KW Kohler KD1500 Emergency Diesel Generator Set, with associated services of onsite testing, commissioning, and training, which will be used to supply emergency backup power to critical loads at Dworshak National Fish Hatchery. The contract will be fully funded using appropriate fiscal year revolving operations and maintenance funds.

4. DESCRIPTION OF SUPPLIES/SERVICES: The supplies and services required are to be sole sourced from Power Systems West. Approval is requested to procure one (1) 1500KW Kohler KD1500 Emergency Diesel Generator Set with associated services for back-feed synchronization with the existing onsite Kohler generator to provide emergency power for critical loads at the Dworshak National Fish Hatchery as part of a requirement to upgrade the outdated electrical system. The required delivery date for the generator is no later than 60 weeks from contract award, and the onsite start-up commissioning will be scheduled no later than eight weeks after the generator is delivered. The estimated cost for the generator set purchase with start-up commissioning and training is .

5. AUTHORITY CITED: Title 41 U.S.C. §1901(e)(2) as implemented in FAR 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items. Acquisitions conducted under simplified acquisition procedures are exempt from the requirements in part 6. However, contracting officers must prepare sole source (including brand name) justifications using the format at 6.303-2, modified to reflect that the procedures in FAR subpart 13.5 were used in accordance with 41 U.S.C. §1901.

6. REASON FOR AUTHORITY CITED: FAR 13.500(a) authorizes the use of simplified acquisition procedures for commercial items not exceeding $7.5M ($15 million for acquisitions as described in 13.500(c)). Acquisitions conducted under simplified acquisition procedures are exempt from the requirements of FAR Part 6, but sole source justifications shall be prepared using the format in FAR 6.303-2 and modified to reflect 41 U.S.C. §1901.

a. BACKGROUND: In 2020-2021, Dworshak personnel procured and installed a 1500KW

Kohler KD1500 generator which supplies emergency backup power to the Main

Pumphouse. This previous procurement did not specify a brand and was conducted through competitive simplified acquisition procedures, resulting in an award to a vendor who quoted a 1500KW Kohler generator. In its current configuration, this generator only provides power to loads in the main pumphouse. One of the main goals in the Dworshak National Fish Hatchery (DNFH) Electrical Improvement project is to provide a redundant power supply for all critical loads at the hatchery. To do so, it is necessary to ‘synchronize’ or run the existing 1500KW and a second generator in parallel. Due to the complexity of a modern generator’s control system, the only practical way to synchronize the existing generator with another generator is to purchase another identical unit.

b. JUSTIFICATION: The Contracting Officer deems only one source reasonably available in accordance with FAR 13.106-1(b) for this requirement to purchase and place a second Kohler KD1500 generator. Simplified acquisition procedures under FAR Part 13, above the simplified acquisition threshold of $250,000, will be utilized for this action. The only feasible way to parallel the newly procured generator with the existing generator is to install an identical unit. The new generator must be programmed to have a back-feed synchronization with the existing onsite generator for the new emergency power distribution schematic. All control aspects of the generator, which are necessary to synchronize it to another unit, are built into a proprietary control system of the generator.

There is not a way to link a non-Kohler generator to the existing generator. Power Systems West is the authorized regional distributor and service provider for Kohler industrial generators. For the Kohler manufacturer, distributors outside the region, and dealers, all testing, commissioning, training, and maintenance services related to industrial Kohler generator set purchases must be coordinated directly through Power Systems West so that they can oversee the start-up commissioning and activate the warranty. Power Systems West has trained and certified technicians throughout their service region for testing, commissioning, maintenance, and emergency services of Kohler generators.

c. IMPACT: Procurement of a different style of generator would result in either an inability to synchronize the generator, or invalidation of the existing warranty on the Kohler unit on site, if the contractor attempts to modify it to communicate with a different manufacturer’s control system. Conversations with Kohler’s technical engineering team indicated that there were no practical ways to accomplish this. Dworshak National Fish Hatchery depends on 100% reliable power for fish rearing life support. Such delays, without emergency remedy, would affect fish health and/or growth and may result in loss of brood stock and/or death of livestock in the rearing environment.

Utilizing a source other than Power Systems West introduces significant risk of improper generator function or failure to meet required technical specifications.

Regardless of the vendor, Kohler warranty activation and essential start-up services must be performed by Power Systems West.

d. ALTERNATIVES: To meet the requirement of installing a second generator that will synchronize and run parallel to the existing Kohler KD1500 generator, there are no alternatives to purchasing a second identical generator. No other brand of generator can be synchronized with the existing one and any alternative would require the removal of the current generator and the procurement of two new generators instead of one. The existing generator is less than 5 years old and replacing it would duplicate costs of approximately . While the Kohler KD1500 generator is a brand-name necessity, the acquisition also requires critical associated services for start-up commissioning and training by a factory technician to ensure full integration.

Power Systems West is the exclusive, authorized regional distributor and service provider for Kohler industrial generators in the State of Idaho. Any other potential contractor, including other Kohler dealers or distributors, while able to supply a Kohler KD1500, would not be authorized to perform these essential, warranty-critical services.

Consequently, attempting to acquire the generator from a different source would mandate subcontracting Power Systems West for these specialized services. This would result in the Government incurring additional costs through an unnecessary pass-through markup by the prime contractor. In addition, a Kohler industrial generator set requiring on-site start-up commissioning services must come directly from the Kohler regional distributor, Power Systems West, as the Kohler distributors are limited by their service coverage areas. Further, purchase of the specified Kohler KD1500 generator from any source represents other than full and open competition, regardless of the number of vendors who may provide quotes.

A third alternative is to procure the generator and the placement, commissioning, and training services separately. Separating the procurement of the generator from essential warranty-related services – specifically commissioning and training – introduces unacceptable technical and administrative risks. Should the generator be acquired under one contract and services from Power Systems West under a separate contract, assigning responsibility for integration issues, particularly during the critical start-up process and synchronization, becomes significantly complex. Even with Power Systems West performing the services, a prime contractor lacking in-depth Kohler system expertise could introduce compatibility issues, leading to delays, costly rework, and unforeseen contractual complications. Furthermore, managing multiple contracts and coordinating communication between disparate parties would double the Government’s administrative burden, increase costs, and divert resources from other essential tasks. Power Systems West, as the authorized regional distributor and service provider, substantially reduces these risks. Their expertise, certified technicians, and direct communication channels with Kohler guarantee smooth, efficient, and reliable generator systems integration. And again, purchase of the specified brand name generator represents other than full and open competition regardless of the number of vendors who may provide quotes.

7. EFFORTS TO OBTAIN COMPETITION: According to market research, Power Systems West is the sole authorized distributor and service provider for Kohler industrial Generators for Idaho State. The on-site commissioning and training services are essential to the Government’s requirements, and market research indicates the Kohler manufacturer, other Kohler distributors, and Kohler dealers would have to utilize the services of Power Systems West in order to comply with the contract requirements. See paragraph 8, “Market Research”, for further details and “Justification” as to why an alternate generator brand could not provide sufficient emergency backup power to critical loads at Dworshak National Fish Hatchery.

8. ACTIONS TO INCREASE COMPETITION: Due to the specialized nature of the required products and services, and the critical necessity for a single point of responsibility to mitigate the risks outlined in section c, competitive procurement is not feasible. Power Systems West possesses the sole capability to provide the Kohler-specific start-up commissioning and warranty services required to meet the Government’s needs in the State of Idaho while guaranteeing seamless integration and minimizing risk to the Dworshak National Fish Hatchery’s critical operations.

9. MARKET RESEARCH: Market research indicates that all dealers, regional distributors, and the manufacturer themselves would have to work directly with Power Systems West to provide both the products and associated services required for this contract. While distributors and dealers would be able to supply the Kohler generator set, Power Systems West is the only company that can provide service to Kohler generators due to the fact they are the only authorized Kohler service provider in the State of Idaho.

Conversations with Kohler Power Systems and Nixon Power indicated that synchronization between multiple manufacturers was not possible. Kohler, as the manufacturer of this equipment, is the authoritative source of these questions. Nixon Power Systems was one of the suppliers of our existing KD1500 unit and is an electrical supplier and integration group that specializes in mixing and matching components from different manufacturers, including multiple brands of comparable size generators. Their engineering team stated that, based on their experience, synchronization of two modern generators of differing brands was not possible. Additionally, the Government consulted with subject matter experts across the Division and confirmed that synchronization, or paralleling, is only possible with identical twin-set generators.

10. INTERESTED SOURCES: This Sole Source Justification and Approval will be made publicly available in accordance with FAR 13.501(a)(1)(iii). As stated in paragraph 8, all dealers, regional distributors, and the manufacturer themselves would have to work directly with Power Systems West to provide both the products and associated services required for this contract; therefore, awarding this contract to Power Systems West provides the Government with the best value by ensuring a fully integrated solution from a provider uniquely qualified to deliver both the necessary products and services.

11. OTHER FACTS: None

12. TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Electrical Engineer

13. REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

Project Manager

14. FAIR AND REASONABLE COST DETERMINATION: I hereby determine that the anticipated price/cost to the Government for this contract action will be fair and reasonable. The basis for this determination will be price analysis in accordance with FAR 15.404-1(b).

Contracting Officer

15. CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer

CUI//SP-PROCURE//FEDCON

Control Number:

Approval

Based on the foregoing justification, I hereby approve the procurement of 1500KW Kohler KD1500 Emergency Diesel Generator Set and associated services from Power Systems West on an other than full and open competition basis pursuant to the authority of 41 U.S.C. §1901(e)(2) as implemented in Federal Acquisition Regulation (FAR) 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items. The estimated value of the new, basic contract is . The approval is subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for this acquisition.

LAURA J. EICHHORN

Advocate for Competition